Running Head: WAL-MART EXPANDS HEALTH BENEFITS
Business Case 4
Human Resource Management Foundation – HRM 500
1. How well do you think Wal-Mart’s earlier, more limited health benefits supported the company’s overall business strategy?
I feel Wal-Mart’s earlier, limited health benefits did not support the company’s overall business strategy because, in order for employees to want to work for a specific employer, employees must feel they are making a difference in his/her position. Employees must also feel that the organization is meeting some of their important needs. Employees place value in job satisfaction for example, employee earnings and benefits. ‘A job is the primary source of income and financial security for most
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Employees can have the options of choosing what prescriptions he/she prefer either generic at $4 dollars, or name brand. Another pro is employees are able to decide and control what he/she is available to afford when deciding what benefits fit their needs. Part-time employees can be included in the benefits plan, allowing him/her coverage. Also,” insurance benefits are not subject to income tax, as wages and salaries are” (Noe, 2009, p. 374). Three cons of Wal-Mart’s benefits program are with so many options for employees to chose can be confusing. When employees are unsure of what benefits are needed, him/her may not decide properly and may go without, or chose the wrong plan. The high deductibles for some may eat up to much of his/her pay if the employee is working part-time or is on a limited budget. 4. How would you recommend that Wal-Mart communicate the plan to its employees? Consider what information the employees will need and which media will be most effective for delivering that information. Wal-Mart has several options in communicating their new benefits plan by providing detailed information on the company website. Employees are able to access the information and discuss the plan with family members. Wal-Mart should make available example worksheets and brochures explaining each feature of the medical benefits plan. Also, Wal-Mart could provide either through the company